What is Elevator Liability Insurance?

Elevators, an indispensable part of city life, carry millions of people every day. However, these vehicles consisting of mechanical and electronic components can malfunction and lead to unwanted accidents even with regular maintenance. In cases such as cabin falls, door jams, getting stuck between floors, or electric shocks, people using the elevator (residents, guests, couriers) may be harmed. Elevator Liability Insurance is a liability insurance that covers bodily (death, injury) and material damages suffered by third parties as a result of accidents related to the elevator in the building, within the limits specified in the policy.

This insurance is also commonly known as “Third-Party Liability Insurance Against Elevator Accidents.” As Panacea Insurance, we take this heavy burden off the shoulders of site and apartment managers, managing legal processes by paying the compensation of victims in a potential accident.

Why is it Vital for the Apartment Manager?

According to the Property Ownership Law and the Code of Obligations, the building manager is primarily responsible for the maintenance and safety of the main real estate. When an elevator accident occurs, the prosecutor’s office first calls the manager for a statement in the capacity of “Building Responsible.” If there is negligence on the part of the manager in the accident (failure to have maintenance done, operating a red-tagged elevator, etc.), the manager may have to pay compensation with their personal assets.

• Maintenance Company’s Insurance May Not Be Enough: Elevator maintenance companies also have their own professional liability insurance. However, if the accident is caused by a deficiency under the responsibility of the building management (e.g., electrical installation, user error) rather than a maintenance error, the maintainer’s insurance will not pay. In this case, the building management’s own insurance must step in.
• High Compensations: In cases of injury or death in elevator accidents, compensation amounts can reach millions of liras. It is impossible to collect this amount through apartment dues.

Policy Scope and Coverages

Panacea Insurance’s Elevator Liability Insurance stands by the victims and the building management at the time of an accident:

• Bodily Damages: Treatment expenses in case of injury, disability compensation in case of permanent disability, and death compensation to be paid to legal beneficiaries in case of death.
• Material Damages: Damages to people’s belongings (e.g., carried load, baby stroller, electronic devices) during the accident.
• Legal Costs: Attorney fees and court expenses in compensation lawsuits filed against the building management.

The “Golden Rule” for Insurance Validity

Taking out this insurance does not mean you will receive payment under all circumstances. There are two basic conditions for the insurance to step in:

1. Authorized Maintenance Contract: It is mandatory that the maintenance of the elevator is carried out regularly in monthly periods by an authorized elevator company (with an HYB Certificate).
2. Green/Blue Tag: The annual periodic control of the elevator must have been carried out (by MMO or an authorized body) and it must have received a “Suitable for Use” (Green or Blue) tag. If an accident occurs while operating a red-tagged (unsafe) elevator, the insurance company will not pay for the damage because this means knowingly taking a risk.

Difference from Common Area Insurance

Common Area Insurance (or Site Package) for apartments usually covers fire, earthquake, and storm risks of the building. Elevator Liability coverage can sometimes be provided as an “Additional Coverage” within these packages. However, you must check whether the limits are sufficient. A standalone Elevator Liability policy usually offers higher limits and broader scope.

Which Situations are Paid, Which are Not?

Knowing the limits of the insurance protects you as a manager:

Situation	Coverage Status
Injury Due to Rope Breakage	✅ Paid
Property Damage Due to Door Jamming	✅ Paid
Accident in a Red-Tagged Elevator	❌ Not Paid (Negligence)
Elevator Without a Maintenance Contract	❌ Not Paid
Breakdown of the Elevator Itself (Motor Burnout)	❌ Not Paid (This is a Machinery Breakdown issue)

Important Note: This insurance does not pay for the elevator’s own failure (repair money). It pays for the damage caused to others by the elevator. For situations such as the burnout of the elevator’s motor, “Machinery Breakdown Insurance” is required.

What Should the Manager Do in Case of an Accident?

When an elevator accident occurs:

1. First Aid and Safety: Attend to the injured and close the elevator for use.
2. Report: Document the incident with a police/gendarmerie or fire department report. Take statements from eyewitnesses.
3. Notification: Inform Panacea Insurance and your maintenance company within 5 days at the latest.
4. Maintenance Records: Have the latest maintenance invoices and the green tag report ready for the insurance company.

You can access detailed information about elevator operation and maintenance regulations on the official website of the R.T. Ministry of Industry and Technology. Panacea Insurance offers the most accurate policy by performing a special risk analysis for apartment managements.

In conclusion, Elevator Liability Insurance is the seat belt of vertical transportation. It means peaceful management for managers and a safe life for residents.
With Panacea Insurance, let your elevators raise not only floors but also safety standards.